Chapter 12 Summary and Analysis

In 1957, the liquor license for Valachi's restaurant, the Lido, is revoked for undisclosed ownership. The license has been under the name of his former partner's son but the state authorities finally see through this ruse. Valachi's long arrest record precludes him from being approved for the license. Valachi's dress factory closes after he discovers that his partner has not paid withholding taxes on the employees for years. He has to sell all the machinery to cover the back taxes. His loan-sharking money is used to open up another failed restaurant in New Jersey. Strapped for money, Valachi goes back into narcotics for a quick fix. To supplement this income, he beefs up his loan-sharking operation and gets into a potentially lucrative jukebox operation.

Valachi is upset that his old partner Johnny Robilotto is taken out because of his close association with...